China’s revenge spenders will splurge on beef as country reopens
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The shift in China’s consumption differs from that in many other regions.
PHOTO: AFP
BEIJING - As consumers in China flock back to hot pot chains and high-end restaurants after about three years of strict Covid-19 lockdowns, they are going to be splurging on good quality beef.
Many Chinese are increasing their frequency of beef consumption, especially the younger generations, middle-to-high-income families, and health-conscious people, said Rabobank senior animal protein analyst Angus Gidley-Baird. After lockdowns, consumers will be spending money on products which they perceive to be valuable and worthy. This means demand for quality beef will rise.
“Beef is perceived to bring better taste, more health benefits and different eating experiences,” Mr Gidley-Baird added. While pork continues to dominate the menu in China, beef is seen as a good source of protein and iron.
The shift in China’s consumption differs from that in many other regions. Consumers around the world generally have cut back on eating beef, even in countries where it has traditionally been the protein of choice. Reasons include inflation and tightened household budgets, as well as concerns about health risks and the environment.
While weaker economic conditions will drag down consumption among lower-income groups, other segments of the population are eating more beef.
As a result, “we expect a gradual increase in high quality beef consumption, although total consumption may increase more slowly”, Mr Gidley-Baird said.
This opens opportunities for Australia, according to Rabobank. Beef exporters there may benefit from declining supplies in the United States and a temporary suspension of Brazil’s exports to China due to a case of mad cow disease, which will affect export flow in the first half of 2023.
In 2022, Australia was the third-largest beef shipper to China, trailing Brazil and the US. BLOOMBERG